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The Kindred Group subsidiary Trannel International Limited has suffered a major setback as a result of a substantial punishment of €222,736 ($244,085) levied by Malta’s Financial Intelligence Analysis Unit (FIAU). The fine results from flagrant violations of regulatory requirements, which disclose serious flaws in Trannel’s risk assessment procedures.

An examination by the FIAU revealed that Trannel had broken regulatory requirements by neglecting to carry out appropriate risk analysis for customers with deposits more than €2,000. One of the main shortcomings of Trannel’s Customer Risk Assessment (CRA) approach was that it did not link numerous customer accounts and instead evaluated each one separately without taking into consideration the activities of the larger customer base.

Trannel quickly corrected the shortcoming by putting in place an automated risk assessment model connected to account registration in response to the compliance test. The FIAU emphasized the seriousness of Trannel’s compliance violations in spite of remedial measures.

Skewed Risk Assessment Priorities

The oversight organization highlighted cases in which Trannel’s evaluation of risk unduly prioritized transaction risk over other pillars such as customer and regional risk. About 40% of the player profiles that were analyzed had been improperly assessed, ignoring things like payment methods, transaction speeds, and deposit amounts.

Trannel’s insufficient examination of financial red flags was brought to light by two particular player profiles. In one instance, a player made 18-month deposits totaling €3.5 million ($3.8 million), participating in non-closed loop transactions with inconsistent claimed income. In the second case, suspicious revenue sources, third-party e-wallet transactions, and deposits surpassing €350,000 ($383,548) in three months were all factors. Trannel did not collect the necessary data to verify these participants’ financial activity.

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Trannel was also not upholding its record-keeping responsibilities; for seventy percent of player profiles, the open-source intelligence that was gathered online was not properly documented. The sanctions imposed by the FIAU underscore the imperative necessity of strict compliance protocols in the online gambling sector.